Pitch Best MidCap Deal 2021: Daiwa House Group – Jan Snel
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Name of the deal: Daiwa House Group acquires Jan Snel from Parcom
Date closed: 18-12-2020
Published value: 100 – 250 Million (€)
Buyer(s): Daiwa House Group
Target: Jan Snel
Seller: Parcom
Involved firms and advisors buy side:
Baker McKenzie (Legal Advisory Corporate/M&A), Deloitte (Financial Due Diligence and Tax Advisory)
Involved firms and advisors target:
DVDW Advocaten (Legal Advisory Corporate/M&A)
Involved firms and advisors sell side:
De Brauw Blackstone Westbroek (Legal Advisory Corporate/M&A), PwC (Financial Due Diligence and Consultancy)
Pitch
Brief description deal/ Deal outline
The publicly traded Daiwa House Group signed a share purchase agreement with the current shareholders of Flexbuild Holding (Flexbuild). Flexbuild is the holding company of Jan Snel Group (Jan Snel), which realizes modular building solutions in the Netherlands, Belgium, Germany and the United Kingdom. With this agreement, Flexbuild and Jan Snel will become part of Daiwa House Group and together are taking an important step in the ongoing rollout of industrialised building across Europe.
Why should this deal win the Award for Best Deal 2021?
Doing successful business and at the same time offering a solution for European housing shortage in a sustainable way? This deal should win this category for obvious reasons.
It is the first step of Japanese factory-made housing giant Daiwa House Group in Europe. Daiwa House plans to roll out industrialised building across Europe from the Netherlands, solving housing shortage in a sustainable way. And they are going to do it via the acquisition of Jan Snel Group.
Jan Snel Group is a family business with roots in Montfoort that’s become an international market leader. In just 60 years, they have grown from a local player to a global partner in the field of modular construction and specialised transportation. With three branches in the Netherlands and locations in Belgium, the UK, Germany and Qatar, Jan Snel is an established name with a solid reputation within the transportation and construction sectors, distinguished by their speed and focus on circularity.
Deal rationale:
The population of the major European countries continues to grow. On the other hand, the continent faces a shortage of housing. There are also issues such as a lack of craftsmen and the soaring building material prices. Under such circumstances, in March 2020 Daiwa House Group decided to establish Daiwa House Europe in the Netherlands as it serves as an excellent base with access to neighboring countries.
With 60 years of experience in the housing business, Dutch company Jan Snel came on the acquisition radar of Daiwa Group. The company also has similar values to Daiwa Group in terms of its corporate philosophy, business policies and social contribution.
What is the impact of this deal on the company?
Jan Snel and Daiwa House Group are both forerunners in industrialised and modular building. Daiwa House is already active in Asia, North America and Australia. Together with Jan Snel, Daiwa House will be capable of further expanding its modular building business within the European market.
What is the impact of this deal on the direct stakeholders?
Harry van Zandwijk, CEO of Jan Snel, said: “The signing of this agreement is a reflection of our growth ambition. Daiwa House will add further expertise in industrial building to Jan Snel’s existing knowledge. With this, we want to become the clear market leader in Europe. In comparison to traditional construction methods, our modular construction method is smarter, faster and more sustainable. By combining our solutions and expertise with the strength of Daiwa House, we are laying a strong foundation for the future.”
What is the impact of this deal on society?
The growing housing shortage and a lack of professionals in the European market has resulted in an increased demand for smarter housing solutions in the market. By combining global knowledge, manpower and solutions, Daiwa Group and Jan Snel can offer well-suited, innovative and fast solutions for the European housing shortage. In comparison to traditional construction methods, their modular construction method is also smarter, faster and more sustainable.
What was most complex about this deal?
The acquisition of Jan Snel was a cross-border and multijurisdictional transaction, so all parties had to deal with the lockdown measures across the countries where people from the deal teams were located. The team from Japanese buyer Daiwa Group wanted to do the final negotiations and the finalizing of the documents and the closing in face-to-face meetings with the other teams in the Netherlands. There were some practical issues bringing all these people together, but it was great to be able to celebrate the closing of the deal together.
